124: Ikuo Yasuda, Chairman, President & CEO of Pinnacle Inc

Ikuo Yasuda is the Chairman, President and CEO of Pinnacle Inc.
(IMAP Japan) and is an expert in M&A business in Japan with
over 30 years of experience. Mr. Yasuda graduated from
Hitotsubashi University in the late 70s and entered the Long-term
Credit Bank of Japan (currently Shinsei Bank) where he eventually
became a Joint General Manager. After over 20 years at LTCB, Mr.
Yasuda was headhunted by General Electric International Japan
(GE) where he worked with Jack Welch managing business
development and M&A. Mr. Yasuda also served as Country Head
of Lehman Brothers Japan and Head of its investment banking
department.


 


Mr. Yasuda says compared to a Japanese company, western companies
are very much performance driven. Unlike a Japanese company, age
is not a determining factor in their status, as Mr. Yasuda’s boss
at GE was younger than him, and there is no seniority system. He
adds that management and executive level workers also do much of
the front-line work, talking to clients and making presentations.
Due to the nature of such a results-driven working environment,
Mr. Yasuda says he had to be very strict with his subordinates,
yet at the same time, motivate them and allow freedom in how they
reached their goals. He took the Ame to muchi (Whip and candy)
approach in leadership, learning from his boss who took a similar
style. Moreover, as his bosses were superior to him regardless of
their age, and had much more decision-making power than Japanese
companies, he felt more pressure to produce results. Mr. Yasuda
explains that one of the “GE way” was to stretch one’s goals. For
example, his team will set a goal of 15% instead of a more
realistic 10%, and push themselves to reach over 10% in the end.


 


After GE, Mr. Yasuda worked at Lehman Brothers as the Country
Head of Japan. When Mr. Yasuda joined Lehman, he felt a different
kind of pressure from working at GE. As GE’s head of business
development, Mr. Yasuda was required to make a series of
acquisitions and develop new businesses. As CEO of Lehman
Brothers Japan, Mr. Yasuda was hired to rebuild the Japan branch
that had decreased and was responsible for producing profitable
ROE.


 


After Lehman, Mr. Yasuda became interested in founding his own
business, combining what he had learned from both cultures. As a
result, Pinnacle, an M&A advisory firm, was born. When
recruiting for people in the firm, Mr. Yasuda was able to receive
great PR appearing on the Nikkei newspaper article as well as
being a TV commentator on a nationally broadcasted news show on
TBS, which prompted many talent people in finance to apply.
Moreover, Mr. Yasuda sought to target CEOs of corporations and
built up his client base by setting up lunch appointments and
golfing. Mr. Yasuda also took full advantage of his business
network, being part of many business leader associations,
including the Tokyo Rotary Club. He explains, when the M&A
research begins from the ground-level and is brought up to the
CEO, the executive is more likely to turn it down because of the
risk factors written up in the reports provided to him. However,
by capturing the CEOs’ interests first, Mr. Yasuda thinks the
M&A will most likely be implemented.


 


As for the future of M&A, Mr. Yasuda thinks more and more
companies will be interested in order to increase their ROE. He
mentions there is much more that M&A can do with Private
Equity Fund and business successions in which companies do not
have a successor. Additionally, Mr. Yasuda points out that the
country is going through a post-industrial revolution with the
rapid-changes due to technology. This will also impact the growth
of M&A.


 


On advice to foreign nationals leading in Japan, Mr. Yasuda says,
it is important to understand the Japanese corporate culture,
which can be unproductive at times. Secondly, he advises to be
patient when doing business in Japan. He further explains, the
Japanese market is fiercely competitive, which is something
foreigners sent to Japan from headquarters would have to explain
continuously. The key to a successful M&A in Japan would also
be a gradual process, winning trust from a minority and slowly
gaining more ownership.


 


Mr. Yasuda defines leadership as someone who is the most
productive person in the organization and can lead by example. In
this way, he thinks one can earn the trust and respect of the
team. Moreover, Mr. Yasuda values fairness and treating his
employees equally, and being transparent with how they are
compensated based on their performance.